US Intelligence Says Iran Still Able to Reimpose Strait of Hormuz Blockade

US intelligence agencies assess that Iran still retains the military capability to shut down the Strait of Hormuz again.

Walter Bloomberg reported on June 16 that US intelligence believes Iran demonstrated during the recent conflict that it can block the strait and may use the same tactic again.

According to the assessment, Iran still possesses missiles, drones, fast boats and mine-laying capabilities, giving it the ability to disrupt traffic through the Strait of Hormuz, a vital route for global energy shipments.

The strait is set to reopen under an agreement between the US and Iran. Even so, US intelligence assesses that Iran still maintains substantial influence over the waterway.

The agencies also warned that Iran could use Middle East energy infrastructure and maritime trade routes as leverage in future negotiations.

The assessment comes after reports that the US and Iran recently signed a memorandum of understanding and agreed to normalize traffic through the Strait of Hormuz.

Markets are increasingly betting on a near-term reopening of the strait. But Iran's continued control over a strategic chokepoint means geopolitical risk in the Middle East has not been fully resolved, market participants say.